UPDATE: Jefferies Raises PT on Precision Drilling on New Opportunities Ahead

In a report published Monday, Jefferies analyst Brad Handler reiterated a Hold rating on Precision Drilling (NYSE: PDS), and raised the price target from $9.00 to $11.00.

In the report, Jefferies noted, “Securing five newbuild contracts, LNG-directed activity potential in Canada and non-NAM prospects add to the sense of potential in PDS. Meanwhile, proactive retirement of older rigs in the U.S. alleviates the ‘treadmill' challenge of some U.S. peers. We raise our PT to $11 from $9 to give more credit to medium term (Canadian) growth, although we Maintain Hold pending visibility on the extent of the potential and U.S. sluggishness.”

Precision Drilling closed on Friday at $10.06.